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Fixed capital is also referred as circulating capital. - Secretarial Practice

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प्रश्न

Fixed capital is also referred as circulating capital.

विकल्प

  • True

  • False

MCQ
सत्य या असत्य

उत्तर

This statement is False.

Explanation:

Fixed capital refers to long-term investments in tangible and intangible assets like land, buildings, machinery, and patents, which are used for production over a long period. Circulating capital, on the other hand, refers to short-term assets like raw materials, inventory, and cash, which are continuously used and replenished in the business cycle. Therefore, fixed capital is not the same as circulating capital.

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Capital Requirements
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 1: Introduction To Corporate Finance - True or false

संबंधित प्रश्न

Match the correct pairs: 

  Group 'A'   Group 'B'
(1) Working capital (a) Redeemed capital
(2) Equity share capital (b) Secretary
(3) Share warrant (c) Shares do not have distinctive numbers
(4) Recommendation of dividend (d) Fixed assets
(5) Fungibility (e)  The link between SEBI and Depository
    (f) Board of Directors
    (g) Registered document
    (h) Sum of current assets
    (i) Bearer document
    (j) Permanent capital

Select the correct answer from the options given below and rewrite the statement.

The sum of all ______ is gross working capital.


Write a word or a term or a phrase which can substitute the following statement.
Capital needed to acquire fixed assets which are used for longer period of time.


Write a word or a term or a phrase which can substitute the following statement.
The sum of current assets.


State whether the following statement is true or false.

The business will require huge funds if assets are acquired on a lease basis.


State whether the following statement is true or false.

A firm with large scale operations will require more working capital.


Liberal credit policy creates a problem of bad debts.


Explain the following term/concept.

Working capital


State any four factors affecting fixed capital requirement.


Justify the following statement.

There are various factors affecting the requirement of fixed capital.


Liberal credit policy creates a problem of bad debts.


Liberal credit policy creates a problem of bad debts.


Liberal credit policy creates a problem of bad debts.


Liberal credit policy creates a problem of bad debts.


Distinguish between the following.

Fixed Capital and Working Capital.


Distinguish between the following.

Fixed Capital and Working Capital


Liberal credit policy creates a problem of bad debts.


Distinguish between Fixed Capital and Working Capital.


Distinguish between the following.

Fixed Capital and Working Capital.


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